Seagate weaknesses means more problems for Intel

The weakness of Seagate will cover for more weakness at Intel according to a Wall Street Analyst.

Vijay Rakesh said that now that the disk-drive marker disappointed on its earnings and guidance it is clear why Intel was behaving as it was. Rakesh was quoted saying, Intel guided its September quarter up about 6 per cent quarter over quarter while Advanced Micro Devices guided down one per cent sequentially.

He said that AMD might have a potential headwind with increasing Ultrabook and 7mm Slim-drive mix. But the HDD supplier from Seagate and Western Digital of life being either flat to down 10 per cent points to incremental further PC weakness continuing in late July into August, he said.

What is interesting is that Intel might have known about this two weeks ago. Chipzilla did warn that it would make a less cash in this quarter. Rakesh said that both Seagate and WDC, which together account for 84 per cent of all HDD drive units shipped points to slower PC shipments in the quarter.